Canada's move as United States confirms hefty Bombardier trade duties

Boeing, which launched the petition over the sale of 75 CSeries aircraft to Delta Air Lines, says the decision validates its complaint.

Commerce Secretary Wilbur Ross said the decision was based on a "full and unbiased review of the facts in an open and transparent process".

Today's ruling maintained a preliminary anti-dumping duty while slightly lowering the massive preliminary countervailing duty, reducing the overall duties on the C-Series from 299.45 per cent to 292.21 per cent.

The US government chose to affix high anti-subsidy tariffs on the Bombardier's CSeries jets, after Boeing Co complained that the Canadian company had received unfair subsidy from their government which, it argued, allowed Bombardier to sell their new aeroplane below cost. That decision is due by February 1.

That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new USA manufacturing facility in Alabama.

The Commerce Department's decision comes as the Trump Administration takes a hard line on trade practices it views as hurting American workers.

He also added: "We would urge the US International Trade Commission to do the right thing for fair trade and jobs by finding against Boeing and setting aside the commerce department's determination when it makes its final decision in the New Year".

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and USA industry", Boeing said in a statement.

In a twist, European aerospace company Airbus, Boeing's chief rival, swooped in October, agreeing to buy a majority stake in the struggling C Series program.

The inquiry now moves to the United States worldwide trade commission, which will examine if the dumping and subsidies caused injury to Boeing.

"There's no case here", Bombardier's Bellemare said, calling the complaint "ridiculous". Bombardier and Boeing argued their cases Monday before the ITC, an independent, quasi-judicial US agency. But the panel also appeared dubious about Bombardier's claims that the CSeries and the smallest versions of the 737 do not compete against each other at all. Boeing suffered another setback last week when Delta announced it was ordering 100 Airbus planes to renew its narrow-body fleet in a move that analysts viewed as a snub of Boeing over the case.

"Unfortunately, the Commerce Department decision is divorced from this reality and ignores long-standing business practices in the aerospace industry, including launch pricing and the financing of multi-billion dollar aircraft programs", said Mike Nadolski, Bombardier's vice president of communications and public affairs.

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